{"id":15181,"date":"2023-04-18T23:49:38","date_gmt":"2023-04-18T23:49:38","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/western-alliance-beats-quarterly\/"},"modified":"2023-04-18T23:53:14","modified_gmt":"2023-04-18T23:53:14","slug":"western-alliance-deposits-stabilize","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/western-alliance-deposits-stabilize\/","title":{"rendered":"Western Alliance deposits stabilize, profits beat, shares rise after hours"},"content":{"rendered":"

(Reuters) -Western Alliance Bancorp on Tuesday posted stronger-than-expected earnings and said its deposits had stabilized after the March banking crisis,\u00a0news that boosted its shares and other U.S. regional banks in after-hours trading.<\/p>\n

The lender said total deposits fell 11.3% to $47.6 billion in the first quarter from the previous three months, but deposits steadied late in the quarter, growing $2 billion from March 31 to April 14. <\/p>\n

“While we experienced elevated net deposit outflows immediately following the closure of other banks, deposit balances quickly stabilized,” said CEO Kenneth Vecchione in a statement. <\/p>\n

The company said some 73% of its deposits were insured and immediately available liquidity exceeds uninsured deposits, it said. Its proportion of insured deposits was well above industry norms among the 50 largest U.S. banks.<\/p>\n

Analysts at Bespoke Investment Group wrote in a research note that Western Alliance’s results were “another sign of stability for banks.” <\/p>\n

Meanwhile, First Horizon Corp, a Tennessee-based lender being bought by TD Bank Group, reported quarterly adjusted earnings of 45 cents\u200b\u200b per share for the quarter, missing analysts’ estimate of 47 cents. <\/p>\n

First Horizon’s earnings “showed small misses… but in general, while the regional lender fell short of estimates it\u2019s clearly not in the midst of a major crisis,” Bespoke wrote. <\/p>\n

Western Alliance and other regional lenders came under pressure recently, with consumers moving money into bigger banks after the failure of two U.S. lenders triggered worries about a broader crisis and funding costs.<\/p>\n

Last month, Western Alliance affirmed its full-year deposit growth forecast of 13% to 17%.<\/p>\n

Western Alliance’s stock surged more than 15% after the closing bell. Among other regional banks that have been hammered in recent weeks, PacWest Bancorp shares surged 9% and Zions Bancorporation, First Republic Bank and Comerica Inc each rallied around 3%.<\/p>\n

Net interest income for Western Alliance rose 36% from a year earlier to $609.9 million in the quarter ended March 31, reaping windfalls from higher interest payments, as U.S. banking heavyweights did.<\/p>\n

Still, the lender reported a 5% decline in net interest income from the previous quarter due to an increase in average balances of short-term borrowings and interest bearing deposits.<\/p>\n

A worsening economy prompted the lender to stockpile $19 million in rainy-day funds in the quarter, more than double a year earlier.<\/p>\n

The lender reported a 3.6% rise in first-quarter adjusted profit from a year earlier to $2.30 per share, well above analysts’ average estimate of $2.04, according to Refinitiv data.<\/p>\n

(Reporting by Mehnaz Yasmin in Bengaluru and Nupur Anand in New York; Additional reporting by Noel Randewich in San Franciso and Megan Davies; Editing by Krishna Chandra Eluri, Lananh Nguyen, David Gregorio and Sonali Paul)<\/p>\n

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(Reuters) -Western Alliance Bancorp on Tuesday posted stronger-than-expected earnings and said its deposits had stabilized after the March banking crisis,\u00a0news that boosted its shares and other U.S. regional banks in after-hours trading. The lender said total deposits fell 11.3% to $47.6 billion in the first quarter from the previous three months, but deposits steadied late […]<\/p>\n","protected":false},"author":8,"featured_media":15182,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-15181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3H0VY-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/15181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=15181"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/15181\/revisions"}],"predecessor-version":[{"id":15390,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/15181\/revisions\/15390"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/15182"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=15181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=15181"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=15181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}